UK FinTech Growth Partners has announced the launch of a new investment fund focussed on supporting growth stage FinTechs as they scale.

The FinTech Growth Fund, which is backed by Barclays, NatWest, Mastercard, London Stock Exchange Group, and Peel Hunt, aims to invest in UK FinTechs predominantly between Series B and pre-IPO.

C.S. Venkatakrishnan, group chief executive of Barclays, said that the fund will see private capital "turbo charge" the industry and lead to economic growth.

"We will support portfolio companies through strategic guidance and connectivity to the wider FinTech ecosystem," added the chief executive. "This is an exciting collaboration which will accelerate the transformation of financial services, not just for our customers and clients but for society at large.”

The fund is expected to undertake on average four to eight investments per year, each worth between £10 million and £100 million.

The first investment into businesses is scheduled for the fourth quarter of 2023.

The new fund will also provide strategic support for companies and give them access to relevant experience across FinTech, venture capital, and the wider financial services industry.

Paul Thwaite, chief executive of NatWest, described the UK's FinTech sector as the "envy of Europe" but warned that it had faced a lack of domestic growth capital.

"That’s why NatWest is delighted to back the FinTech Growth Fund in support of its ambition to grow into Europe’s largest FinTech fund, focused on bridging the UK’s growth capital gap," he said. "We commit to continuing to provide support and financing to help break down barriers to growth and enterprise for high growth, high potential UK companies.”

Kelly Devine, president of Mastercard UK and Ireland said that while FinTechs have the potential to be a growth powerhouse for the UK, its partners have said they need better access to funding, networks and international markets.

"We partner with hundreds of FinTechs in the UK and beyond, but we want to do more to make sure the industry remains world leading," she added. "Through this fund, we’ll provide crucial sources of capital, as well as access to new markets, customers, and opportunities through our global network.”

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